Callinex Announces Preliminary Results from Ongoing Induced Polarization Survey at Nash Creek
Callinex Announces Preliminary Results from Ongoing Induced
Polarization Survey at Nash Creek
VANCOUVER
,
Oct. 1, 2018
/CNW/ -
Callinex Mines Inc.
(the "Company" or "Callinex") (TSXV: CNX) (OTCQX: CLLXF) is pleased to announce preliminary
results from its ongoing district-scale induced polarization ("IP") survey at the Company's 100% owned Nash Creek Zinc Project (the "Project") located in
the Bathurst Mining District of
New Brunswick, Canada
(
See Figures
1 and 2). The IP survey commenced at the northern grid located approximately 1 km
east of the Nash Creek Deposit (See News Release dated
September 5, 2018
). Preliminary results have identified a significant target area that spans
approximately
1900m
by
400m
and appears associated with a synclinal repetition of the Nash Creek Deposit (See Figure 3). The footprint of this target
area compares favorably to the IP signature associated with the Nash Creek Deposit.
Callinex completed two holes to evaluate the conductive responses modelled in the target area and both holes intersected various amounts of sulphide
mineralization that has potential to host zinc and lead mineralization. The intersected depth of the sulphide mineralization correlates well with the modelled
chargeability and samples have been sent to the lab for analytical testing. The Company anticipates that this target area will be thoroughly drill tested in
the next drill program after the larger IP survey has been completed. Targets generated from previous IP surveys over the Nash Creek Deposit have
shown a very high correlation to the current mineral resources (See Figure 4 and Table 1).
To date, approximately 65 line km have been completed as part of the survey and it is anticipated that the remaining 110 line km will be completed within
90 days due to slower than anticipated production.
The Company has also completed its ongoing drill program which consisted of 23 holes totaling approximately
4,750m
. It is planned that significant drilling
will occur to follow up on IP targets associated with this survey in the spring of 2019.
J.J. O'Donnell, P.Geo, a qualified person under National Instrument 43-101 and a Consulting Geologist for Callinex, has reviewed and approved the
technical information in this news release.
Figure 1: Map of the Bathurst Mining District of
New Brunswick
Figure 2: Nash Creek Land Package
Figure 3: Nash Creek Deposit Correlation with 2011 IP Survey
Figure 4: Nash Creek Preliminary Results of 2018 IP Survey
Table 1: Mineral Resource Estimates for the
Nash Creek
and Superjack Projects
Indicated Mineral Resources
Project
Tonnes
Zn Eq.
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
Cu
(%)
Contained Zn Eq.
(M lbs)
Nash Creek
13,592,000
3.21
2.68
0.58
17.8
n/a
963
Total
13,592,000
3.21
2.68
0.58
17.8
n/a
963
Inferred Mineral Resources
Project
Tonnes
Zn Eq.
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
Cu
(%)
Contained Zn Eq.
(M lbs)
Superjack
3,211,000
4.63
3.01
0.78
29.5
0.27
328
Nash Creek
5,929,000
3.11
2.68
0.47
13.9
n/a
407
Total
9,140,000
3.64
2.80
0.58
19.4
0.09
735
Notes:
1
.
Mineral Resources are categorized according to CIM Definition Standards; it cannot be assumed that all or any part of Inferred Mineral Resources
will be upgraded to Indicated or Measured as a result of continued exploration.
2
.
The Nash Creek Mineral Resource Estimate includes the Hickey Zone and Hayes Zone.
3
.
The Superjack Mineral Resource Estimates includes the Nepisiguit A (the "A Zone") and Nepisiguit C Zones (the "C Zone").
4
.
Zinc equivalent Mineral Resources for the Nash Creek Project based on trailing 3-year metal prices and metallurgical recovery assumptions based on
limited testwork. Zinc equivalency is calculated as Zn%+ 0.747*Pb% + 0.006*Ag_ppm.
5
.
A cut-off grade of 1.5% Zn Eq. was utilized in the resource estimate.
6
.
Zinc equivalent Mineral Resources for the Superjack Project were calculated using metal prices of
$1.12
/lb for zinc,
$1.06
/lb for lead,
$2.97
/lb for
copper and
$20.38
/oz for silver. Metal recoveries have been assumed to be 100% for zinc, 72% for lead, 86% for copper and 70% for silver. A cut-
off grade of 1.5% Zn Eq. was utilized in the Mineral Resource Estimate
.
7
.
Numbers may not add due to rounding.
About Callinex Mines Inc.
Callinex Mines Inc. (TSXV: CNX) (OTCQX: CLLXF) is advancing its portfolio of zinc rich deposits located in established Canadian mining jurisdictions.
The portfolio is highlighted by its
Nash Creek
and Superjack deposits in the Bathurst Mining District of
New Brunswick
. A 2018 PEA outlined a mine
plan that generates a strong economic return with a pre-tax IRR of a 34.1% (25.2% post-tax) and NPV8% of
$230 million
(
$128 million
post-tax). The
projects have significant exploration upside over a district-scale land package that encompasses several high-grade mineral occurrences along a 20 km
trend.
Click here
to view a video overview of the Nash Creek Project.
Callinex has a project portfolio that also includes projects within the Flin Flon Mining District of
Manitoba
that are located 25 km to an operating
processing facility that requires additional ore. The Company's projects host Indicated resources of 13.6 Mt averaging 3.2% Zn Eq. totaling 963 million
pounds and Inferred resources of 23.2 Mt averaging 5.2% Zn Eq. totaling 2.7 billion pounds (See News Release dated
April 16, 2018
).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to
future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or
achievements expressed or implied by the statements. Such factors include, among others, the ability to complete the proposed drill program and the
timing and amount of expenditures. Except as required under applicable securities laws, Callinex does not assume the obligation to update any
forward-looking statement
.
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SOURCE
Callinex Mines Inc.
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For further information:
Callinex Mines Inc., Max Porterfield, President and Chief Executive Officer, Phone: (604) 605-0885, E-mail: [email protected]
CO: Callinex Mines Inc.
CNW 08:30e 01-OCT-18